ESAs Published Final Draft on Intra-Group and Risk Concentration Templates under FICOD

January 18, 2021 -The European Supervisory Authorities (ESAs) submitted to the European Commission the final draft Implementing Technical Standards (ITS) under the Financial Conglomerates Directive (FICOD) on reporting templates for intra-group transactions (IGT) and risk concentration (RC). The proposed date of entry into force of the ITS is 1 January 2022.

The draft ITS will enhance the comparability amongst conglomerates of different EU Member States. The harmonisation of the IGT and RC templates for conglomerates intends to align the FICOD reporting in order to improve supervisory convergence on group-specific risks, in particular contagion risk.

The ITS on reporting of IGT and RC under paragraphs 2b and 2c of Article 21a FICOD is part of a single set of harmonised prudential rules along with the Commission Delegated Regulation (EU) 2015/23035 of 28th July 2015 and will become directly applicable in all Member States once adopted by the European Commission and published in the Official Journal of the EU.

The decision regarding the frequency of the reporting is within the remit of the coordinator and the financial conglomerate should be notified in due course after consultation with the other relevant competent authorities. According to FICOD, the conglomerates shall report at least annually to the coordinator.

The intra-group transactions that will be reported are those significant:

  •  between regulated entities of different sectors belonging to the same financial conglomerate;
  •  between regulated entities of the same sector belonging to the same financial conglomerate;
  •  between a regulated entity and a non-regulated entity belonging to the same financial
    conglomerate;
  •  between a regulated entity and any natural or legal person linked to the undertakings of the financial conglomerate by close links as set out in Article 2 (13) FICOD.

 

The coordinator shall specify the type of transactions regulated entities shall report. The coordinator may only require the reporting of intra-group transactions between group entities from different financial sectors or require the reporting of information which have not already been provided by the reporting entity belonging to the financial conglomerate under sectorial regulation in order to avoid duplication of reporting information.

For more information please visit: EBA website

Jurisdiction: European Union

 

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